Dec 7, 2009

Another example of Supply Chain efforts driving success [Profit]

A quick note about an article I just came across. This is in an effort to show readers of this blog how companies remove inadequacies from their supply chains and get into the profit mode by tweaking their supply chains.
This might serwilliams-sonoma-san-diego-fashion-valley-mall-lrgve as an eye-opener to a few and might be not-so-surprising for some others. Today, I’m starting off a new tag called ‘Profit’. I hope to do more such stories about real successes by companies. And in the end, I hope this serves as an inspiration and a starting point for you to make those very changes at your company – and hopefully impress your boss too!!
I just came across this article which talks about how Williams-Sonoma, a major retailer posted a profit in these troubled times by tweaking their supply chain and managing their costs effectively. What makes it interesting is that they managed this turnaround after facing the threat of a buyout. Here’s an excerpt from the article.

Retailer Williams-Sonoma says improved supply chain management, including cuts in transportation costs, were a major reason the company swung to a profit in its recent fiscal third quarter despite slipping store sales.
The home furnishings specialist removed $150 million in merchandise inventories from its holdings, cutting the inventory count 21.5 percent, while adding $200 million in cash to its balance sheet over that time. image
The result was a $7.3 million net profit in the quarter ending Nov. 1 for a company that lost $11 million in the same quarter a year ago even as net retail sales fell 3 percent.
That included, he said, “the coastal consolidation of our large-cube inventory, and we are now shipping together orders that historically were delivered in multiple shipments. We are also consolidating six third-party furniture delivery hubs into one company-operated hub in Columbus, Ohio,” Lester said.
And not so surprisingly, their shares have been strong through this troubled economy.  The image shows their YTD for 2009. I wonder what Bed, Bath and Beyond has to say to that.

Dec 7, 2009

Another example of Supply Chain efforts driving success [Profit]

A quick note about an article I just came across. This is in an effort to show readers of this blog how companies remove inadequacies from their supply chains and get into the profit mode by tweaking their supply chains.
This might serwilliams-sonoma-san-diego-fashion-valley-mall-lrgve as an eye-opener to a few and might be not-so-surprising for some others. Today, I’m starting off a new tag called ‘Profit’. I hope to do more such stories about real successes by companies. And in the end, I hope this serves as an inspiration and a starting point for you to make those very changes at your company – and hopefully impress your boss too!!
I just came across this article which talks about how Williams-Sonoma, a major retailer posted a profit in these troubled times by tweaking their supply chain and managing their costs effectively. What makes it interesting is that they managed this turnaround after facing the threat of a buyout. Here’s an excerpt from the article.

Retailer Williams-Sonoma says improved supply chain management, including cuts in transportation costs, were a major reason the company swung to a profit in its recent fiscal third quarter despite slipping store sales.
The home furnishings specialist removed $150 million in merchandise inventories from its holdings, cutting the inventory count 21.5 percent, while adding $200 million in cash to its balance sheet over that time. image
The result was a $7.3 million net profit in the quarter ending Nov. 1 for a company that lost $11 million in the same quarter a year ago even as net retail sales fell 3 percent.
That included, he said, “the coastal consolidation of our large-cube inventory, and we are now shipping together orders that historically were delivered in multiple shipments. We are also consolidating six third-party furniture delivery hubs into one company-operated hub in Columbus, Ohio,” Lester said.
And not so surprisingly, their shares have been strong through this troubled economy.  The image shows their YTD for 2009. I wonder what Bed, Bath and Beyond has to say to that.